Ways to Get Started in Real Estate Investing Pt. 1 with No Money

hey guys toby mathis here with infinity investing and today we're going to be talking about how do you make money uh in real estate if you don't have any money and so we're just going to look at the whole scheme of real estate and so i'm going to kind of map it out so you can kind of follow but whenever you're dealing with real estate from the 10 000 foot view is there's situations where you have buyers and sellers people trying to identify each other there's people that are facilitating transactions like lenders escrow agents things like that that are facilitating a purchase then when you have a purchase there's people who are facilitating the use of the property the most extreme example i could give you is like if i have a structure and here comes hilton and they're going to turn it in and they're going to operate it as a hotel i may own the real estate hilton may maybe the operating entity sometimes you see hotel switch names it's usually not the ownership it's actually the people that are running it on the other side it's property managers hey i'm helping you find tenants for your apartment building or tenant for your single family or duplex you name it then there are the people that are doing everything from the accounting on it to hey let's make sure that that we're keeping all your records straight or we're in a niche like hey we have real estate we know there's a an at-risk group let's say single moms veterans sober housing transitional housing autistic housing residential assisted living all those things you have niches that again are going to somebody that has the real estate itself and you're bringing in different groups all of those areas uh have a revenue stream that you can plug into even if you don't have money like just keep in mind even if i'm bringing money to somebody like i'm a mortgage broker i'm bringing the money into somebody who's buying a piece of real estate and so that they can facilitate that transaction i could get paid on that if i'm a real estate agent i represent uh the some some buyers i could get paid a commission for bringing that in if i am a wholesaler and there's somebody who is gonna who might need to do a non-traditional sale like maybe they're in foreclosure maybe they're struggling to make payments or maybe they didn't even know they were going to sell it and i i'm a wholesaler and i work with a bunch of investors and i can just buy cash right and i work in that facility you know in that arrangement or even zillow's a great example they're starting to buy properties right somebody's working inside there that's getting paid to do those transactions actually so there's a really good example like all these different companies brokerage houses exp uh redfin all these different groups they're all monetizing real estate without owning the real estate and so let's just kind of map it out so we may have the pre sale where we're looking at buyers and sellers and putting them together so we're going to facilitate that relationship we want these guys to get together and i'm going to put myself in there right here yay and i'm gonna get some cash for this so how could i do that well i could maybe i'm working with a bunch of buyers that are investors and maybe i maybe i like single-family residences that i can rent for a particular ratio of the price like usually it's one percent of the price is what a lot of people use as a rule of thumb i would say maybe a little bit higher than that if you can at a minimum we're looking at something called a cap rate which you can learn about infinity investing so you know what it actually is but it's basically the return on it and so if i know a bunch of buyers and i know what they're willing to buy and they give me a list like they're almost giving me a grocery list hey toby i want you to go to the grocery store and buy me tomatoes and peppers and some steaks right i can just say oh and now i look for the sellers so i'm looking for the grocery stores right well maybe the grocery stores are hidden right so maybe i have to go find some people that are willing to sell me what they're looking for i'm looking for peppers and tomatoes and steaks right so i go out to the farmers i go out to the ranchers the cattle ranchers and i'm looking around for those things in the real estate market i'm looking for qualified sellers i'm looking for people that fit a certain profile where the house will meet the certain numbers and so i know by what these guys are asking for the buyers are saying hey we want a seven cap right hey i want a seven cap property or there might be a four cap it depends and i'm looking in these particular areas and i want this three bedroom two bath and if they're giving you an order list you could put yourself into the revenue equation by finding them the properties that meet their order and that's called a wholesaler you can learn all about it again infinity investing everybody's looking for wholesalers i'll just tell you there's people with massive appetites to acquire properties and they need people to go door-to-door knock it around know the area and have the expertise to go out and do that i know this because the groups that we work with wholesale hundreds of properties a month that don't fit a criteria perhaps for their investor but fits a criteria for somebody else so for example if i'm a new family and i'm looking for a property in a great school district or this that or the other that property may not fit the profile for an investor to purchase and rent but it still may fit theirs and so if i know and on my list i have saying hey if you have a property that fits this criteria in this zip code or these streets once you start learning it hey i would like it and then somebody else says hey if you have a property that meets these criteria in these particular areas i'd be interested and then you have somebody else that says hey as long as you're over there if you see any duplexes or this that or the other i'd be interested or somebody else says hey you know what i'm looking for five to six bedroom that i can co-house and and this is what i'm looking for along bus lines and stuff then you just start order taking you're going out and looking at all these properties and you know what you could pay for them because i can do the reverse calculation hey you need seven cap this is what the rents are in this particular area this is what i could afford to pay here's your property you know looks like i could afford to pay 200 000 you could make an offer tomorrow on that 200 000 knowing that you already have a buyer on it and then you could take that that that acceptance on that offer and you can market it and get paid that's what wholesaler does it's way easier than you realize i should say it's simpler not easy it's simple because hey i know exactly who i'm buying for and i know what to look for but it ain't easy because if it was easy they would just do it but i sometimes have to go out and go door-to-door go knocking around driving for dollars is what they say i have to do the research and i have to put the labor in and then i can bring it to people and i can get paid i don't have to have a dollar to do that you could just have to know your area you just have to invest the time to start driving your streets and learn these things and you could do it absolutely so that's one side the other side is the actual transaction so the sale there's obviously an easy route to be in in on that side which is hey i could be in the i could be a real estate agent for example and i start to cross over you know somebody's coming in i get listings and stuff but i'm getting a commission on the sale so that's one side hey does it make sense to be a real estate agent well if you want to learn real estate and you want to get paid to learn real estate that's actually not a bad route to take there's licensing there's requirements to do it etc uh i could also be on the side of you know so that's maybe the agent they're getting paid the brokerage i could also be in the funding side i'm bringing in money maybe i'm helping facilitate it and so sometimes these same buyers are also going to be on the lender's side they're called non-traditional lenders hard money lenders and quite often you could be getting into that revenue stream as well again you're looking for people that fit a certain criteria that may not be able to get traditional lending because maybe they have too many properties maybe they're not going to qualify under fha whatever the case maybe their credit is just horrific and you could take it to certain non-traditional there's there's that route there's being in the broker's side hey i decide that i'm gonna go get my broker's license i'm not even gonna be the agent i'm just gonna run the brokerage house and i'm gonna oversee it we have many people that do that or maybe they're really good at marketing they're looking because they have buyers and they know they have buyers and they take it to the next level and they say i'm also going to go to the to the retail side and go to the traditional uh buyer as well and i'm looking for anybody who's selling a property i'll list it or hey i'll go out there and find out how to how to fix your situation i'll give you guys real life situation gal lots of properties and she's worried because her sole heir isn't good with money and so she's thinking oh the worst thing i could do is leave all my properties to my heir my son who's not going to be able to to manage them so i'm going i need to sell them ahead of time but i don't want to get killed in taxes well that sounds to me like hey i've done these transactions i immediately know i know exactly what you're looking for you're looking to to sell it but you don't want to stop your revenue stream nor do you want to get killed in taxes let's do an installment sale for the whole package we'll manage it and this revenue stream will go on for a period of years and that will go to your air and so they will be receiving that money when you pass and we can we can this works great when somebody's older and they don't want to dump a whole bunch of properties on somebody on the same token now i'm getting infinite revenue streams like this little guy up here really means something i want real estate because it doesn't go away it doesn't it doesn't wear out it doesn't disappear real estate's there right and i can just put structures on it and i can generate income off of it even if i don't put a structure on it some some land i could still generate revenue from it put a cell tower on it i could sell mineral rights i could do whatever right there's ways to to monetize all those things and all of those things go into the post sale and so the post sale is really management you could be looking at lease opportunities all those things that you could do with the property i could be looking at niches i have groups i have clients that run organizations that do housing for example for disadvantaged groups it could be transitional housing it could be for free for inmates non-violent offenders there's people that are getting county money constantly to do the transitional housing it could be single moms or it could be victims of of trafficking whatever there's lots of niches it could be veterans housing it could be residential assisted living for for the elderly it could be autistic housing all of those things fall into these niches and you could actually have an org we call them operators where they go in and say we're looking for properties and we want to lease the property from somebody else and then i'm going to sub it out to these other organizations probably one of the most successful organizations we've seen doing that is pad split where they say hey in a lot of cities i can't afford my own apartment so i'm going to do housing with other people it's like a boarding house except it's the new way of doing a boarding house which is i have my own room with my own sometimes it's a kitchenette sometimes there's a bathroom i'm gonna have my own space but it's gonna be a 100 150 to 200 bucks a week as opposed to doing these monthly uh leases where i may not qualify for the lease i may not have first and last month i like all these things come in and trip me up maybe i maybe i got evicted once and i'm never going to qualify for another lease again this is where you go into the co-housing arena and now they're monetizing bringing those people in to the property and then somebody else might even manage it i could manage it or better yet like think about airbnb vrbo i'm doing i'm a host i'm getting paid i don't own those properties all i'm doing is taking somebody else's property and i'm monetizing it there's literally endless opportunities you just have to know where you could fit along this timeline now i know i made it simple and i know i threw a lot at you in a short period of time that's why you come into infinity investing and start learning and start seeing a what fits your personality not everybody needs to be in management right i'm the worst manager on the planet i should not be managing a property right but i own a lot of properties and i have properties that i lease to niches i have properties that i do and i have property management company that i could be a part of that i own but i don't do the management i have people that do that because they love to do the property management there's non-profit side that i'm involved in i love working with the united way and catholic charities and working with transitional housing and those types of things i love doing that do i want to be the one that sits down with all the people and puts them in the property no that's somebody else's passion and if that's you then there's a spot for you in that realm and i just say you figure out where you fit i am not a real estate agent for example i buy from wholesalers there's a lot of wholesalers that make a lot of money off of me and my organization because we're like yes yes if i say i want peppers tomatoes and steak and they bring me peppers tomatoes and steak you know what i say yes i'll take that and i say this is what i'm willing to pay for it if they bought it for 10 cents on the dollar of what they're selling it to me for i don't care i've had wholesalers make 70 000 on a transaction they brought me a great warehouse something that i was looking for at the price that i asked for and they brought it they made 70 grand great i've had real estate folks make hundreds of thousands of dollars on transactions when i buy an apartment or something that's great there's absolutely no problem with that because they're filling my need i am the buyer they find me the appropriate seller they should get paid you could get paid too it's just figuring out which one of those niches which one of those areas is best for you and your circumstances depending on where you live how good you are with technology whether you're willing to go in and use a vehicle like prop stream in fine pre-foreclosures whether you're willing to drop mail whether whether to drive whether you're willing to go out and do bandit signs and all those things that start generating the leads so that you could find the the motivated sellers and match them with the appropriate buyer if that's you you could do very very well without having a nickel to your name like you could literally jump in and start doing this stuff right away by just creating the relationships finding the need and helping put these things together whether it be money whether it be properties buyers and sellers whether it be managers whether it be putting in different groups that might be using a property all those things you can get paid on it's just figuring out where the opportunity lies and which ones fits your personality and again you can learn all that at infinity investing hey if you like these types of videos please like it and more importantly give us your comments because we create content based off of the feedback so so make sure you do that and then please if you like this subscribe to our channel thanks again bye [Music] you

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